D-Market Elektronik Hizmetler ve Ticaret (HEPS) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw a 14.8% year-over-year decline in GMV to TRY 42.7 billion, with revenue down 7.9% to TRY 14,386.9 million, reflecting inflation-adjusted figures under IAS 29.

• Net loss widened to TRY 355.1 million from TRY 180.5 million in Q1 2024, mainly due to higher operating losses and increased loan loss provisions.

• EBITDA dropped 72.8% to TRY 108.8 million, with EBITDA margin falling to 0.3% of GMV.

• Free cash flow turned negative at TRY 931.8 million, compared to a positive TRY 1,421.9 million a year earlier.

• The quarter was impacted by politically driven consumption boycotts, counter-inflationary policies, and declining consumer purchasing power.

Financial highlights

• GMV decreased 14.8% year-over-year to TRY 42.7 billion; marketplace GMV fell 14.2% to TRY 29.4 billion.

• Revenue declined 7.9% to TRY 14,386.9 million; 1P and 3P revenues fell 14.9% and 13.2%, respectively.

• Gross contribution margin improved by 2.0pp to 12.5%, driven by higher other revenue and delivery service revenue.

• Net loss for the period was TRY 355.1 million, up from TRY 180.5 million in Q1 2024.

• Free cash flow was negative TRY 931.8 million, a significant decline from positive TRY 1,421.9 million in Q1 2024.

Outlook and guidance

• Management expects continued reporting of order numbers excluding digital products, aligning with the controlling shareholder's metrics.

• Forward-looking statements highlight risks from inflation, currency devaluation, regulatory changes, and macroeconomic headwinds.